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Guide · Car accidents · All states

Uber and Lyft accident lawsuits and settlements: how they work

Updated By the Counselworthy teamGeneral information, not legal advice

Short answer

  • Most Uber and Lyft injury claims are insurance claims, against coverage the law requires.
  • In New Jersey, a ride carries at least $1,500,000 in liability coverage from the moment the driver accepts it.
  • A claim against Uber or Lyft itself usually goes to private arbitration under their terms.
  • Firms' posted results are below.

Checked October 24, 2026.

Sources: N.J.S.A. 39:5H-10(b), (c); N.J.S.A. 39:5H-2; Uber, U.S. Terms of Use, section 2, Arbitration Agreement (last modified October 12, 2026); Lyft, Terms of Service, section 17, Dispute Resolution and Arbitration Agreement (last updated February 9, 2026). Every fact cites a source

Rideshare settlements firms posted

Two numbers get quoted for rideshare claims, and the firms we rank posted their own results. None of them is a value for your claim. Here's what each one measures.

  1. $1,500,000New Jersey minimum, during a rideWhat it isThe least liability coverage a rideshare driver, the company or both must carry from the moment the driver accepts a ride until the last rider gets out.Source: N.J.S.A. 39:5H-10(b), (c); N.J.S.A. 39:5H-2Why it isn't yoursIt's a floor on insurance, not a value. A policy pays up to its limit, and a claim is worth what its facts support.
  2. $50,000New Jersey minimum, waiting for a rideWhat it isThe least liability coverage per person while a driver is logged on and waiting for a request.Source: N.J.S.A. 39:5H-10(b), (c); N.J.S.A. 39:5H-2Why it isn't yoursAlso a floor, not a value, and much lower than during a ride. When the crash happened decides which one applies.
  3. $467,500What firms advertiseWhat it isThe middle of 14 rideshare accident results that 5 ranked firms advertise on their own sites. They run from $185,000 to $1,220,000. 9 of them don't say what year.Source: Firm websites, checked November 1, 2026Why it isn't yoursFirms post their wins, so these run high. Expect most claims to settle lower.
What firms advertise for rideshare accident injuries
Lowest
$185k
Middle
$468k
Highest
$1.2M

14 results from 5 firms. Each step on the scale multiplies, so small and large amounts both fit.

See all 14, each in the firm's own words with its source

By injury, the New Jersey rule that matters most

Advertised results for one injury show once 3 firms post 5 of them. None has enough yet.

  • PassengersHurt riding in an Uber or LyftDuring a ride, the coverage must include at least $1,500,000 in liability and $1,500,000 in uninsured and underinsured motorist coverage.Source: N.J.S.A. 39:5H-10(b), (c); N.J.S.A. 39:5H-2
  • Rideshare driversHurt while driving for an appWhile logged on and waiting for a request, a driver's coverage must include at least $50,000 per person and PIP.Source: N.J.S.A. 39:5H-10(b), (c); N.J.S.A. 39:5H-2
  • Back and neckSoft tissue, disc or back injuriesUnless the policyholder chose otherwise in writing, a standard policy's lawsuit limit applies: pain and suffering needs one of the injuries the law lists.Source: N.J.S.A. 39:6A-8(a); N.J.S.A. 39:6A-2(i); N.J.S.A. 39:6A-8.1(b)

Which policy pays

Insurers describe a rideshare trip in periods. A standard personal auto policy generally won't cover ride-sharing, so the company's required coverage matters most.

Logged on, waiting for a request

The Insurance Information Institute calls this the first period. In New Jersey, coverage must include at least $50,000 per person and $100,000 per incident, plus PIP.

Source: Insurance Information Institute, Ride-sharing and insurance: Q&A; N.J.S.A. 39:5H-10(b), (c); N.J.S.A. 39:5H-2
Ride accepted, heading to pick up

The second period. In New Jersey, a ride starts when the driver accepts it, so the full ride coverage already applies: at least $1,500,000 in liability.

Source: Insurance Information Institute, Ride-sharing and insurance: Q&A; N.J.S.A. 39:5H-10(b), (c); N.J.S.A. 39:5H-2
Passenger in the car

The third period. In New Jersey, the ride coverage applies until the last rider gets out, including $1,500,000 in uninsured and underinsured motorist coverage.

Source: Insurance Information Institute, Ride-sharing and insurance: Q&A; N.J.S.A. 39:5H-10(b), (c); N.J.S.A. 39:5H-2
App off

The periods start when the driver logs into the app. With it off, the driver isn't ride-sharing, so none of the rideshare coverage applies.

Source: Insurance Information Institute, Ride-sharing and insurance: Q&A

Can you sue Uber or Lyft?

You can bring an insurance claim, and you can sue the at-fault driver. A claim against the company itself is different: both companies' terms send it to private arbitration.

  1. Uber's terms name injury claimsUber's terms of use say disputes go to binding individual arbitration, not court, and they name incidents or accidents resulting in personal injury or death.Source: Uber, U.S. Terms of Use, section 2, Arbitration Agreement (last modified October 12, 2026)
  2. Lyft's terms cover all claimsLyft's terms say all disputes and claims between you and Lyft are resolved by binding arbitration, on an individual basis.Source: Lyft, Terms of Service, section 17, Dispute Resolution and Arbitration Agreement (last updated February 9, 2026)
  3. The exceptionsBoth carve out individual small claims cases, and individual claims of sexual assault or sexual harassment. Neither carves out injury claims.Source: Uber, U.S. Terms of Use, section 2, Arbitration Agreement (last modified October 12, 2026); Lyft, Terms of Service, section 17, Dispute Resolution and Arbitration Agreement (last updated February 9, 2026)
  4. A New Jersey exampleIn 2024, New Jersey's Appellate Division sent two injured Uber passengers' claims against Uber to arbitration, reversing a trial court. The decision is unpublished, so it doesn't bind other courts.Source: McGinty v. Zheng, No. A-1368-23 (N.J. Super. Ct. App. Div. Sept. 20, 2024) (unpublished)

Employees or contractors?

Holding a company responsible for a worker's crash often turns on whether the worker is an employee. The companies say their drivers are independent.

  1. New Jersey's Department of Labor disagreedIn 2022, it said Uber and a subsidiary misclassified hundreds of thousands of drivers as independent contractors. The companies contested it, then paid a revised assessment of $100,000,000.Source: New Jersey Department of Labor and Workforce Development, news release, September 13, 2022
  2. That was about benefitsThe case was about unemployment, temporary disability and similar contributions, not about who answers for a crash.Source: New Jersey Department of Labor and Workforce Development, news release, September 13, 2022

NJWhat New Jersey's law makes them hand over

New Jersey's rideshare law gives injured people tools that an ordinary car crash doesn't.

  1. The driver's log-on timesIn a claims investigation, the company must provide, on request, exactly when the driver logged on and off in the 12-hour periods before and after the crash.Source: P.L.2017, c.26, sections 10 and 12 (N.J.S.A. 39:5H-10, 39:5H-12)
  2. Every insurer's coverageEach insurer on the claim must disclose its coverage, exclusions and limits to the others on request.Source: P.L.2017, c.26, sections 10 and 12 (N.J.S.A. 39:5H-10, 39:5H-12)
  3. If the driver's coverage lapsedThe company's insurance must provide the required coverage from the first dollar of a claim, and the company has the duty to defend it.Source: P.L.2017, c.26, sections 10 and 12 (N.J.S.A. 39:5H-10, 39:5H-12)

NJThe deadlines in New Jersey

  1. Sue the at-fault driver, in generalN.J.S.A. 2A:14-2(a)Within 2 years
  2. A PIP payment is overdue afterN.J.S.A. 39:6A-5(g)60 days of written notice
Source: N.J.S.A. 2A:14-2(a); N.J.S.A. 39:6A-4; N.J.S.A. 39:6A-4.3; N.J.S.A. 39:6A-5(g)

Sources

General information, not legal advice. We don't know the facts of your claim. A lawyer can review them, and most injury lawyers offer a free consultation.

What to do next

Questions people ask

Can you sue Uber after an accident?

You can bring an insurance claim and sue the at-fault driver. A claim against Uber itself usually goes to private, individual arbitration: Uber's terms name injury claims, and only carve out small claims and sexual assault or harassment claims.

How much insurance does an Uber driver have?

In New Jersey, at least $1,500,000 in liability coverage from the moment the driver accepts a ride, and $50,000 per person while waiting for a request.

What is the average Uber accident settlement?

No public source reports one, because most claims settle privately. The rideshare results the firms we rank posted are on this page, in each firm's words. Firms post their wins, so they run high.

Does Lyft have an arbitration clause?

Yes. Lyft's terms send all disputes and claims between you and Lyft to binding, individual arbitration, except small claims and individual claims of sexual assault or harassment.

Are Uber drivers employees in New Jersey?

The companies say drivers are independent. In 2022, New Jersey's Department of Labor said Uber misclassified drivers as independent contractors, and Uber paid a revised assessment of $100,000,000.

What should I do after an Uber or Lyft accident?

Screenshot the trip in the app, get the driver's and any other driver's insurance, and report the crash to police. In New Jersey, ask the company for the driver's log-on times; the law requires it to provide them.

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